Posts by Adam Baratta

April 10, 2018 |

Forget Price for a Moment

don't wait any longer

Although the potential for higher prices is certainly a reason to buy and hold gold, there are several other reasons, perhaps even more important reasons, to buy and keep the metal. While most investors have been fixated on the stock market for the last decade, the gold market potentially represents an excellent value at current price levels. Not only that, but the current state of the economy and geopolitical landscape may also warrant a significant allocation in gold. Below are three primary issues that should... Continue Reading

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April 4, 2018 |

The Trade War is on

Volatility Spike

Over the weekend, China announced tariffs up to 25% on a variety of U.S. imports, including pork, nuts, fruit and wine. The action taken by Beijing is in direct response to recent tariffs announced by the Trump administration. The recent actions taken represent a heightened state of tensions surrounding trade, and may continue to keep investors on edge. The war on trade could potentially escalate, and regardless of what side of the political aisle you may lean towards, it could have a significant effect on... Continue Reading

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March 29, 2018 |

Don’t be Fooled

busy week

Concerns over the health of the stock market have been on the rise, and last week’s volatility certainly did not do the bulls any favors. As the threat of a significant global trade war accelerated through fresh action and tough rhetoric, investors saw fit to book profits and run for the exits. Monday saw a completely different looking stock market, however. The market saw its strongest single day performance since 2015, with the Dow Jones Industrial Average rising by some 670 points. A monster day,... Continue Reading

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March 23, 2018 |

Another Quarter Point Hike

Interest Rate Block

On Wednesday afternoon, the Federal Reserve hiked the Fed Funds Rate by another 25 basis points, bringing the rate to 1.50-1.75%. This move from the central bank was widely expected, and investors are likely to be far more focused on the commentary from the central bank after the announcement. The Fed forecast at least two more hikes this year, and also upgraded its outlook on the economy. The combination of tax cuts and government spending are cited as potential catalysts for higher inflation and a... Continue Reading

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March 19, 2018 |

The Time to Prepare for the Next Recession is Now

Bullish catalyst

The current economic expansion in the U.S. is the third longest recorded. And while the idea of a never-ending expansion is certainly appealing, it is also straight out of fantasyland. The economy will see another recession, and the next one could be closer than many have been anticipating. And it could be brutal… Whether its next year, two years from now or even early in the next decade, the next recession could have a significant impact on the economy. Only this time, the Fed may... Continue Reading

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March 13, 2018 |

Is a 40 Percent Correction in the Cards for Stocks?

Graph map

Risks for stocks seem to be increasing by the day. That being said, it could still me time before stocks finally make a long-term top. After all, numerous analysts have been calling for a top for some time now, yet the market has remained stubbornly bullish. Whether the top is finally reached tomorrow, next week, next month or sometime next year, the end of the bull market is likely on the horizon. While a “correction” is defined as a pullback of 10 percent or more,... Continue Reading

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March 7, 2018 |

Could a Trade War Send Gold Higher?

Markets have a lot on their plate right now, including the notion of higher interest rates, overstretched valuations and accelerating inflation. If that is not enough for stock market bulls to contend with, how about adding the potential for a global trade war. Stocks are set to open lower again on Monday, as the threat of a trade war begins to sink into investor psyche. Last week, President Donald Trump made waves as he discussed heavy tariffs on steel and aluminum products. The 25 percent... Continue Reading

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March 1, 2018 |

No Easy Way Out

More Trouble Ahead

Now that new Fed Chairman Jerome Powell has taken the reigns, investors seem to be getting a sense that the central bank is not likely to deviate from its previous course under Janet Yellen. The central bank is still sticking with three possible rate hikes for this year, and the possibility of a fourth or perhaps larger hike are also on the table. The central bank now finds itself in a very difficult, if not impossible, situation. It has to attempt to control accelerating inflation... Continue Reading

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February 23, 2018 |

More Fed Minutes – Same Story

FOMC

Wednesday’s release of the highly anticipated Fed meeting minutes were essentially a non-event. Although no action is expected from the central bank until, next month, some investors did seem to be a bit nervous as the new Fed Chairman, Jerome Powell, takes the reigns. The central bank did stick with some similar language, as it suggested that it would on a path of gradual rate hikes. Of particular note, the Fed did raise its inflation expectations and stated that core personal consumption expenditures would rise... Continue Reading

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February 17, 2018 |

Inflation Running Hotter

This week, investors anxiously awaited the release of key inflation data that has the potential to be market-moving. On Wednesday, markets saw the most recent data on CPI. The month-over-month reading came in at .5%, above consensus estimates of a .3 or .4% rise. The core CPI reading, which excludes volatile food and energy costs, seemingly confirmed the higher month-over-month data with a rise of .3%. Today saw the release of the latest data on PPI, which also points to increasing price pressures. Month-over-month PPI... Continue Reading

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